Ruling slams EU sugar subsidies

The European Union's subsidised sugar exports are illegal. That's the ruling from the World Trade Organization, following two appeals and nearly two years since the case was originally brought by Brazil, Thailand and Australia.

The subsidies, originally intended to allow farmers in the EU to compete on world markets, depress world prices, so tropical producers cannot compete. To make matters worse, the EU imports more sugar from developing nations than the US, Canada, Japan and Australia combined, then processes and re-exports a lot of it.

Despite promising in the 1980s to cut subsidised exports to 1.3 million tonnes, the EU still exports around 4 million tonnes, plus another indirectly subsidised 2 million tonnes, which the WTO also declared illegal. The European Commission says it will issue a package of laws implementing the ruling next month. "We will abide by our international obligations," says trade commissioner Peter Mandelson.

Adam Harrison of ...

To continue reading this article, subscribe to receive access to all of newscientist.com, including 20 years of archive content.

To continue reading this article, log in or subscribe to New Scientist

App + web

Web

Smartphone

Tablet

$25.99 - Save 65%

12 issues for $2.17 per issue

with continuous service

Print + web

Print

Web

$28.99 - Save 61%

12 issues for $2.42 per issue

with continuous service

Print + app + web

Print

Web

Smartphone

Tablet

$39.99 - Save 73%

12 issues for $3.33 per issue

with continuous service

Web

Web only

$49.99

30 day web pass

Prices may vary according to delivery country and associated local taxes.